Transaction Trends

By Amy Zirkle

For those of us in the payments industry, we know first-hand the impact technology has in transforming our industry.  Whether it’s innovation at the point-of-sale, expanding the reach of mobile payments and digital wallets, the growth of online payments, or the deployment and use  of API’s, technology will continue to shape all aspects of the payment landscape, including the merchant services and sales channel.  This innovation is perhaps best represented by the continuing growth of payment facilitators.  Whether you think of them as aggregators, or payment service providers, payment facilitators offer another model for acquiring.

As the ISO channel leverages technology, there is a natural evolution towards the integration of software capabilities.  As integrated software vendors (ISVs) begin to incorporate payment capabilities, they can offer an expanded package of services to support payment acceptance, as well as accounting system integration and billing systems management.  While the potential for the payment facilitator segment to grow is significant, it remains paramount that those players entering the payments arena do so with a deep knowledge and understanding of risk mitigation and management, underwriting requirements for the submerchant base, and the establishment of a robust program to ensure compliance with all the key card network and industry rules.

With an eye on the potential growth of the payment facilitator model, ETA developed its Guidelines document to provide aspiring payment facilitators with the tools necessary to properly develop and incorporate a risk and compliance program.  Working closely with ETA member companies who have an active interest in the payment facilitator space, ETA crafted the Guidelines to serve as a toolkit for payment facilitators to understand all levels of appropriate portfolio oversight, as well as best practices, recommendations and the ongoing responsibility to manage and evaluate submerchant risk exposure.

You can find the Payment Facilitator Guidelines here.